Crypto exchange Kraken announced in a blog post today that the US State of Wyoming has approved their application to form a so called „Special Purpose Depository Institution“ or SPDI. The new affiliate company will be called Kraken Financial and is seated in Cheyenne, the capital of Wyoming.
The blog post further says that Kraken Financial is the first digital asset company in U.S. history to receive a bank charter recognized under federal and state law. Kraken Financial will be the first US regulated bank to provide comprehensive deposit, custody and escrow services for digital assets.
According to the CEO of Kraken Financial
“We’re thrilled to work in a state so aligned with our philosophy and values. Wyoming is a rare and shining example of how thoughtful regulation can drive innovation for FinTech companies.”David Kinitsky – Kraken Financial, CEO
Kraken was founded in San Francisco, Ca. on the 28th of July 2011 by Jesse Powel, who remains CEO to this day. The exchange is also active in the Europe, and accepts Euro deposits via SEPA.
Kraken is always looking to expend its business. At the beginning of 2019 the exchange bought Crypto Facilities, a platform focused on trading cryptocurrency futures. With a current daily trading volume of $7.4 Billion (including derivatives), Kraken is one of the 5 largest trading platform in the cryptocurrency industry.
Adoption is advancing
The move undertaken by Kraken is an important step forward for the crypto industry. Offering custody allows the less technically versed customers to invest in cryptocurrencies. Investing will also become easier for institutions. This is the second positive news for Bitcoin to come from the US corporate world this week, after the recent announcement that MicroStrategy had increased its Bitcoin reserves to $425 Million. In the meanwhile, Bitcoin has reclaimed the $11,000 mark once more.
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Disclaimer: The authors of this website may have invested in crypto currencies themselves. They are not financial advisors and only express their opinions. Anyone considering investing in crypto currencies should be well informed about these high-risk assets.
Trading with financial products, especially with CFDs involves a high level of risk and is therefore not suitable for security-conscious investors. CFDs are complex instruments and carry a high risk of losing money quickly through leverage. Be aware that most private Investors lose money, if they decide to trade CFDs. Any type of trading and speculation in financial products that can produce an unusually high return is also associated with increased risk to lose money. Note that past gains are no guarantee of positive results in the future.
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